BYJU'S founder Byju Raveendran on 'Best' and 'Worst' decision the company made and 'Missed' opportunity

BYJU'S founder Byju Raveendran has confessed that securing a USD 1.2 billion term loan in 2021 was a significant error for the company. Speaking to ANI, Raveendran stated that this decision was made collectively with the board, which included both investor and founder directors. He emphasized that the company was not in a desperate financial situation at the time, having previously raised $5 billion. Reflecting on the decision, Raveendran acknowledged that BYJU'S had alternative equity funding avenues available. Launched in 2015, BYJU'S achieved unicorn status by 2019 and reached a peak valuation of USD 22 billion in 2022. However, in June 2024, Prosus significantly slashed BYJU'S valuation by 75 percent.

'Worst' Decision that BYJU'S Made
Raveendran admitted that the term loan ultimately played a role in the financial challenges the Bengaluru-based edtech company is currently facing, which include regulatory scrutiny and legal battles. "Only mistake if you ask me, which created all this is that we shouldn't have taken this, when we had enough equity options, we shouldn't have taken this term loan at that time in 2021. One billion (USD) because it was, like, we had other options. We have raised 5 billion before that. We were not doing it out of desperation. It was all collective decision. Today everyone, like our board was like three founder directors and three investor directors. They were there till 2020," Raveendran said.

Akash Acquisition Termed 'Best' Decision
Despite the challenges, Raveendran highlighted the acquisition of Aakash Educational Services Ltd (AESL) as one of BYJU'S "best acquisitions." He acknowledged that while some of the six major acquisitions may not have performed as expected, the success of others, like Akash, is often overshadowed. BYJU'S acquired Aakash in April 2021 for approximately $950 million in a cash-and-stock deal.

Missed Opportunity with WhiteHat Jr
Raveendran also lamented a missed opportunity with WhiteHat Jr., stating that the concept of Indian teachers instructing students globally in mathematics was a "huge opportunity lost."

Grew too fast globally, expanded to 21 countries in two years
Raveendran admitted that BYJU'S expanded "too fast" into 21 countries, driven by a "mandate" from its global investors to grow and transform learning. He suggested that a more gradual approach might have been prudent. "When we tried expanding from India to the whole world, We made some business mistakes. Maybe we could have taken it a little bit slowly. We were growing a little too soon, too fast. We went from India to 21 new countries. But if you ask me, in that context of 2019 to 2021, the COVID era, We have 160 investors, world-class investors, and equity investors. All of them - this was the mandate grow, grow, grow and change the way kids learn," Raveendran told ANI.

BCCI Payments and Insolvency Proceedings
Regarding payments to the Board of Control for Cricket in India (BCCI), Raveendran explained that BYJU'S had paid a substantial amount (nearly ₹1500 crore) but faced a liquidity crunch for the final ₹158 crore, leading to BCCI approaching the National Company Law Tribunal (NCLT). He stated that a settlement has been reached with BCCI following the company's admission into the Corporate Insolvency Resolution Process (CIRP), and BYJU'S should be out of insolvency soon.